Win, Inc Has 10,000 Shares of 7%, $100 Par Value, Cumulative

Win, Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2015. If the board of directors declares a $70,000 dividend, the

A) preferred shareholders will receive 1/10th of what the common shareholders will receive.
B) preferred shareholders will receive the entire $70,000.
C) $70,000 will be held as restricted retained earnings and paid out at some future date.
D) preferred shareholders will receive $35,000 and the common shareholders will receive $35,000.